Problem
Marketing spend had grown consistently over recent years without much procurement involvement. There were out of date contracts in place, no Supplier Relationship Management and a vast supplier base.
Print, events and media were the main subcategories within the Marketing area with a spend of around £100M p.a. Suppliers had not been reviewed, agreements renewed and rates had increased 7-8% over the previous 3 years.
Solution
We conducted a demand management exercise for Print, Media and Events. Working together with stakeholders to understand their needs and to evaluate if their current suppliers were offering competitive rates and delivering a high standard service.
Existing contracts were renewed and, where agreed with stakeholders, rates and terms renegotiated with incumbent suppliers.
Where we knew better terms could be achieved services and products were tendered .
A thorough evaluation of products or services took place where more than 3 suppliers were used and could be consolidated.
Results
The supplier base were reduced by 10%, getting rid of suppliers that:
- had zero spend for over 2 years,
- were consolidated
- did not comply with the company’s processes
£200k annual savings across print, media and events.
